Strata fees are one of the most important and most misunderstood costs when buying a condo, townhouse, or strata property in British Columbia. They affect affordability, resale value, and the overall financial health of a building. Yet many buyers review the number without fully understanding what it covers, how it was calculated, or what expenses may still land on their plate afterward.
This guide breaks down everything you need to know about strata fees in a complex, where to find them in Form B, how they are determined, what they typically include, and the risks of not verifying them carefully.
What Are Strata Fees?
Strata fees, also called strata levies or maintenance fees, are monthly payments collected from all owners in a strata corporation. These funds are used to operate, maintain, repair, and insure the common property and shared systems within the building or community.
Every owner contributes based on their unit entitlement, which is tied to the size and value of their strata lot relative to the entire complex.
In simple terms, strata fees keep the building functioning, financially stable, and maintained over time.
Where to Find Strata Fees in Strata Documents (Form B)
The most reliable place to confirm strata fees is the Form B Information Certificate. This document is prepared by the strata corporation or property management company and provides an official snapshot of the building’s financial and operational details.
Within Form B, you will typically find:
- Monthly strata fee amount for the unit
- What the fees include
- Contributions to the contingency reserve fund (CRF)
- Any outstanding special levies
- Budget details and financial obligations
- Insurance information
- Upcoming approved expenses
Form B is a legally relied-upon document in real estate transactions. Buyers should never rely solely on MLS descriptions or verbal statements when verifying strata costs.
How Strata Fees Are Determined
Strata fees are set annually based on the operating budget approved by the strata council and owners. The budget forecasts the total cost of running the complex for the year, and those costs are divided among owners according to unit entitlement.
Several factors influence strata fee amounts:
1) Building Age and Condition
Older buildings often require more maintenance and repairs, increasing monthly costs.
2) Amenities
Pools, gyms, elevators, guest suites, concierge services, and landscaped grounds all increase operating expenses.
3) Size of the Complex
Smaller complexes typically have higher fees per unit because fewer owners share the costs.
4) Insurance Premiums
Insurance is one of the largest expenses for strata corporations in BC and has increased significantly in recent years.
5) Contributions to the Contingency Reserve Fund
Healthy buildings contribute regularly to the CRF to prepare for future major repairs such as roofing, envelope work, and mechanical systems.
What Strata Fees Typically Include
While every complex is different, strata fees commonly cover:
- Building insurance
- Exterior maintenance and repairs
- Landscaping and snow removal
- Cleaning of common areas
- Property management services
- Elevator maintenance
- Lighting and utilities for shared spaces
- Garbage and recycling (in many buildings)
- Water and sewer (in some buildings)
- Contributions to the contingency reserve fund
Some complexes may also include heating, hot water, or gas, but this varies.
What Strata Fees Often DO NOT Include
This is where buyers can get caught off guard.
Not all strata fees cover full utility and municipal costs. Owners may still be responsible for additional monthly expenses, including:
- Electricity (BC Hydro)
- Natural gas inside the unit
- Cable and internet
- City utility levies
- Water and sewer charges (if not included)
- Garbage collection (in some townhouse complexes)
- Parking or storage fees
- Insurance for the interior of the unit
Risks of Not Verifying What Strata Fees Include
Failing to review strata documents thoroughly can lead to serious financial surprises.
Unexpected Monthly Costs
A building may advertise “low strata fees,” but if utilities like water, sewer, garbage, and gas are not included, the real monthly cost may be significantly higher.
Special Levies
If the strata has underfunded maintenance, owners may face sudden one-time payments for major repairs.
Budget Instability
Low fees can sometimes signal deferred maintenance, which often leads to higher future costs.
Insurance Gaps
Some buyers assume strata insurance covers everything. It typically only covers the building structure and common property, not personal contents or interior upgrades.
Resale Risk
Buyers and lenders review strata finances. Poor budgeting, high levies, or unclear inclusions can impact marketability and value.
Questions Buyers Should Always Ask
Before purchasing a strata property, it’s critical to confirm:
- Exactly what the strata fees include
- What utilities the owner must pay separately
- Whether there are any special levies planned or likely in the future
- The health of the contingency reserve fund
- Recent increases in strata fees
- Insurance coverage and deductibles
- Whether maintenance has been deferred
Find these answers in the Form B, meeting minutes, financial statements, and depreciation reports.
Why Strata Fees Matter for Long-Term Ownership
Strata fees allow us to know how well a building is managed.
Well-run strata corporations typically show:
- Consistent fee planning
- Strong contingency reserves
- Transparent budgets
- Proactive maintenance
Buildings with artificially low strata fees may feel attractive upfront but can create major financial stress later.
Buyers who understand strata fees make more confident decisions, avoid surprise expenses, and protect their investment.
Speaking to a professional is essential. Please always verify the accuracy of this information through your own due diligence. Nicole McWilliams will assume no responsibility or liability for the accuracy of the information within.
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